Now’s the Time to Cash in on a Bargain in the City of Light!

By Jay Corless, edited by Adrian Leeds

The following information is provided by the Chambre de Notaires de Paris, published on October 24, 2024.

The scene in Île-de-France is gradually brightening, thanks to falling interest rates and improving household finances. These positive signs, coupled with the potential for a market recovery, offer a glimmer of hope. Despite the current downturn, we anticipate a much-needed boost in sales in the near future.

From June to August 2024, 27,950 resale properties changed hands in Île-de-France, marking a 16% drop compared to the same period in 2023. While this may seem concerning, it’s important to note that the market has shown resilience, with sales down by 16% in July and 18% in June. Even when we roll back the clock for two years, the market is still standing, albeit at a historical low.

Paris, typically the standout, isn’t breaking away from the pack this time. Sales are down 13% in the capital, 14% for houses across Île-de-France, and 18% for apartments in the Petite and Grande Couronnes. However, early data suggests that houses are showing more life, continuing the slight uptick we’ve observed in recent months. These positive signs give us hope for the future.

PRICES ON THE DECLINE, BUT IT’S NOT ALL DOOM AND GLOOM

Over the past year, from August 2023 to August 2024, prices for resale properties across Île-de-France fell by 6.1%. Apartments dipped by 6.0%, while houses took a slightly bigger hit at 6.4%. We saw an 8% decline in April, so this is progress!

Apartments in the Grande Couronne are faring better, with prices down only 4.7% in August. The rest of the market is holding steady, with drops between 6% and 7%. Pre-sale contracts show that apartment prices are holding their ground, continuing the stagnation in recent months. Expect minor changes from September through December, with a slight dip of 0.8%.

By the end of the year, we should see annual apartment price drops ease up to around 3%—that’s 2.9% in the Petite Couronne and just 0.9% in the Grande Couronne.

For houses, after a little summertime lift, prices are expected to dip again, down 2.4% over the next three months. Looking at the bigger picture, house prices will likely end the year about 6% lower than last December, with an 8% drop in the Petite Couronne and 5.6% in the Grande Couronne.

And let’s remember Paris! The price per square meter for resale apartments in the City of Light is expected to drop from €9,500 in August (a 6.3% year-on-year drop) to €9,370 by December. That means the annual decline should settle at about 4% by year’s end.

And how is all of this relevant to you as a potential buyer? Now’s the time to cash in on a bargain in the City of Light!

Read the report in its entirety (in French).

A bientôt,